Marshall Islands’ President Survives Political ‘Attack’ Prompted By National Crypto Proposal
Hilda Heine, the president of the Republic of Marshall Islands, has recently narrowly survived a vote of confidence (which is sort of like an impeachment attempt) which was prompted by her plans to introduce cryptocurrencies to the country.
The Parliament of the islands was reportedly split 16-16 on whether to make Heine resign from office or not. While the country had initially backed the idea of creating a national digital currency, which would be called the Sovereign (SOV), the Parliament seemed to change her mind and this prompted the attacks. The Sovereign was supposed to be used along with the USD, the country ‘s mainstream currency.
However, some of the president’s critics have accused the plan of tarnishing the reputation of the country and dissenting senators, together with the former president Casten Namra, were fierce detractors of the plan which almost caused the president to lose its position.
The Political Situation Was Already Bad
Before this incident, the country had already lost $1 billion USD from the Marshall Island Trust Fund, which was set up by the United States to compensate the citizens from nuclear tests which were made nearby.
Also, the Chinese plan to turn the Marshallese atoll of Rongelap into an administrative zone with a tax-free port and an offshore company had caused political tensions in the island because Heine sees it as a Chinese incursion into the country and its sovereignty.
Because of this, it looks like the whole thing might be much more a political fight than a fight against cryptos themselves. According to The Next Web’s Hard Fork, the idea to remove Heine from the leadership occurred after eight senators accused her of “ruining the reputation of the country”.
Country Will Move Forward With The
According to the reports of media outlets from the region, the government is still planning to move forward with plans to launch the Sovereign. However, now that the legislators decided to keep the president in the government, they will still have to wait for the International Monetary Fund (IMF) and the United States and Europe to evaluate the initiative before the final launch.
However, the IMF has already warned the government of the country that adopting a cryptocurrency is very risky and that the potential benefits are smaller than the potential losses that the country there is a chance that international institutions might end up delaying, even more, the launch or finishing it for good if there is not enough support in the country to maintain it.